The Retained Profits Balance of the Fruit Drop Company Was

question 27

Multiple Choice

The retained profits balance of The Fruit Drop Company was $40 000 on the first day of the year. Profit during the year was $20 000. Near year-end a $10 000 dividend was declared that is to be paid in the following year. Year-end retained profits are:

• A) $70 000.
• B) $60 000.
• C) $50 000.
• D) $40 000.

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